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Find short-term fix, then go long term

Posted:
11/26/2012 06:42:20 PM MST

With the election over, Washington lawmakers are deep into negotiations to find a way to avoid mandatory spending cuts and the expiration of tax cuts, the so-called fiscal cliff, set to take effect Jan. 1.

Despite some sentiment that letting sequestration (the real name for the fiscal cliff) take effect would force true governance in the future, Republicans and Democrats both appear to be more willing to compromise than in the past and almost certainly will come up with a plan to avoid the cliff.

It likely will be a short-term plan, which seems to be the only way Washington can govern these days, but at least that will get the federal government on its way to reducing budget deficits and reining in the national debt.

After that, Congress and the president must truly tackle those two problems with a long-range budget-deficit plan. That must include a revamp of the labyrinthine tax code, which is in sore need of simplification and equity, to increase revenues. It also must include reductions in federal spending. Both will be required to eventually balance the budget and pay down the debt. Congress also must reform both Social Security and Medicare.

It's important that Congress signal to the American people that it can govern again and put an end to the political games that have marked the past few years and resulted in unacceptable gridlock and, worse, stumbling from one crisis to the next.

Just as important is the need for certainty and stability, for taxpayers and for businesses.

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Too much of the current economic malaise can be chalked up to the reality that, because of Washington's reliance on manufactured crises and inability to create long-term solutions, businesses and industries are unwilling to move forward. Uncertainty breeds caution.

Washington more than likely will steer the country away from the cliff. Perhaps in the process it will find the common ground and willpower to make the long-term changes needed to avoid creating new ones in the future.

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